Comment Text:
i0-001
COMMENT
CL-02793
From:
Sent:
To:
Subject:
Eric Lunden
Friday, January 22, 2010 3:30 PM
secretary
Regulation of Retail Forex
Dear Sir,
I
am opposed to RIN 3038-AC61.
Lowing the
limit the leverage available to their retail customers
on
such transactions at 10 to 1 from the current 100:1.
If you are doing this to protect the individual trader. It does not. It would actually hurt them. There are enough safe
guards built in. I always trade with stops. If I were foolish enough to trade with out stops this proposal would actually
hurt the individual. The broker would automatically closed all my trades, if the trades were losing money and exceeded
the margin. With more margin at risk, now I am risking more money before I would get a margin call. So if I forgot to
put in a stop and the trade goes the wrong way, I would lose 10 times the money before a margin call would
automatically close me out.
It also would put me more at risk, because instead of have several different trades in at the same time in
different currencies. I would only be able to have one trade in. Again increasing my risk. I am having to
put all my money on one trade.
Lastly this would greatly reduce my ability to trade the FOREX.
If you want to lock out the individual trader from trading the FOREX, this would be great for doing that.
Thank you,
Harry Lunden
